The hotel will be managed by the Movenpick hotel chain, Kingdom Holdings Co. said in a statement.

The construction of the hotel has been subject of discussions between Prince Walid and Libyan leader Moamer Kadhafi on the sidelines of the 36th summit of the Organisation of African Unity (OAU) in Lome, it said.

Prince Walid held talks with Kadhafi on investment opportunities in Libya in the eastern town of Syrte in November 1999.

Prince Walid, a nephew of Saudi King Fahd, says he built his fortune, estimated at 20 billion dollars, from an initial gift of 30,000 dollars from his father and a 300,000-dollar loan from Citibank, using his house as collateral.

The 43-year-old prince, who is ranked as the world's fifth wealthiest entrepreneur by Forbes magazine, built his global financial empire by investing in major companies experiencing hard times.

He has invested heavily over past months in technology, media and telecommunications companies.